ResMed Revenue Surges In Third Quarter of FY2020
San Diego-based medical device company, ResMed Inc has just delivered yet another set of outstanding results. In its results for the third quarter of FY2020, the firm witnessed a 16 per cent in revenue increase to $760.5 million, close to 20 per cent higher on a constant currency basis. Additionally, non-GAAP earnings per share jumped by 45 per cent, boosted by solid sales growth in the production of its sleeping masks.
The dual-listed company primarily implements cloud-connected medical software that transforms the lives of individuals with sleep apnoea and other chronic illnesses. The software that can be used beyond the boundaries of hospitals allows individuals to receive treatment in the comfort of their own homes or a setting of their own choice. More recently, ResMed is playing an increasingly critical role where it has been instructed by President Trump under the Defence Production Act to assist in the production of ventilators for COVID-19 patients.
As a result, the decision has witnessed the surge in revenues in the countries it operates in. Specifically, revenues in the US and Canada climbed 12 per cent due to sales in its product portfolio as well as increased demand for ventilators. Likewise, in Asia and Europe, these regions witnessed a 27 per cent growth in sales. Nevertheless, ResMed continues to do well in its software as a service segment where revenue jumped by 12 per cent as a result of continued growth in its service offerings such as MatrixCare and Brightree.
As of 2019, ResMed’s digital health products and breathing machines have successfully helped 105 million individuals across 140 countries. Yet, the firm is aiming to transform the lives of 250 million people by 2025. With more than 100 million lives within its digital health database, the magnitude of data it owns will certainly assist providers in gaining a good insight to bring the level of healthcare to the next level all while reducing costs.
Besides, the firm has played a huge emphasis on research and development (R&D). For the quarter ending 31 March 2020, ResMed has invested heavily within the research space. Specifically, R&D expenses were 15 per cent higher than that of the previous corresponding period. Recently, in a partnership with ATS Foundation to study how remote monitoring can assist in the management of patients with chronic obstructive pulmonary disease, ResMed has successfully received a third $100,000 research grant. With these funds, ResMed aims to be able to identify early in the process insights from daily recording and subsequently inform users of the appropriate time to seek more intensive treatment.
In terms of its product portfolio, the firm has also introduced its first tube-up full-face CPAP (continuous positive airway pressure) Mask. Also known as AirFit F30i, individuals who utilise full-face CPAP users will now find additional features on their face mask. Moving forward, the firm is confident that it will remain in an excellent position to weather through current macroeconomic conditions.
By Caroline Wong
Click here for a 7 days access to our Lotus Blue Portal.